The benchmark indices posted highest single-day gain in over a month on Thursday after Fed Reserve chairperson Janet Yellen on Wednesday indicated the US economy still needs a stimulus package for recovery. The Sensex ended the week on a flat note.
On Thursday, foreign institutional investors (FIIs) bought $72.23 million worth of equity shares, while domestic institutional investors (DIIs) sold $20.45 million worth of equities, according to BSE provisional data. In year-to-date, FIIs have bought $4.8 billion worth of equities.
The BSE Sensex ended 351.61 points or 1.58% higher at 22,628.84 points, while the NSE Nifty ended 104.10 points or 1.56% higher. On Wednesday, while addressing an audience at the Economic Club of New York, Yellen had said, ?The larger the shortfall of employment or inflation from their respective objectives, and the slower the projected progress toward those objectives, the longer the current target range for the federal funds rate is likely to be maintained,” Yellen said.
The market rally was largely led by Hindalco (4.40%), Tata Motors (4.24%), ICICI Bank (3.25%), Bhel (3.10%) and State Bank of India (2.96%).
Benchmark indices ended lower in two of the three trading sessions in the week, which was cut short due to public holidays. The 30-share Sensex fell 207.70 points or 0.92% after the consumer price inflation (CPI) data on Tuesday showed the retail inflation in March grew 8.31% in March from 8.03% in the previous month. On Tuesday, the market barometer was down 144.03 points or 0.64% on the back of disappointing industrial output data. The index of industrial production (IIP) contracted 1.9% for the month of February. The markets would be closed on Friday
Among its peers, Asian markets showed a mixed trend. Hang Seng (0.28%), Straits Times (0.02%), Jakarta Composite (0.49%) and Taiwan Taiex (0.23%) ended in green. Kospi (-0.01%) and Shanghai Composite (-0.30%) ended marginally in red. Among the major European indices, FTSE (0.30%), DAX (0.45%) and CAC (0.45%) were trading higher at 6.30 pm IST.
Back home, about 29 of the 30 Sensex stocks ended in green. In the broader market, the breadth was strong with 1,706 advances as against 1,075 declines. All 12 BSE sectoral indices ended in green. The BSE Realty (2.79%), BSE Auto (2.25%), BSE Bankex (1.78%) and BSE Oil & Gas (1.79%) were the major gainers.
The NSE cash turnover stood at R14,266.87 crore, while the F&O segment saw turnover of R2.22 lakh crore.
Experts feel markets are likely to post further gains. ?Our FY15 target for Sensex is at 24,000. Regardless of the outcome of election, we see the economy recovering and markets gaining further. We are also very near the end of the rate tightening cycle. The long-term view remains positive,? said Gaurav Mehta, VP, institutional equities, Ambit Capital.